French retailer, operating 10,000 hypermarkets, supermarket, convenience and cash&carry stores across 30 countries, 365,000 employees with turnover in excess of €80Bn.
3000 stores (30% franchised), 150,000 employees, €35 Bn turnover. IT had become a major Board concern: Capex and Opex were out of control, costs were too high, IT accountability was diluted over several teams, IT operations performance was poor and unfulfilled business needs were growing.
- created IT Governance chaired by the CEO to review and approve all IT Capex
- streamlined IT suppliers base to five key suppliers selected to share risks and cut costs. Offshore services were put in place from Spain, Czech Republic, Morocco and India
- reorganized the internal IT team: closing three sites out of six, reducing internal IT/IS headcount from 600 to 500 and integrating them to the internal IT services company (CSIF) in Lyon and Massy
- established Carrefour system and IT strategy focusing on:
- supply chain to improve efficiency, productivity and cut shelves shortages
- CRM and loyalty program to move from a “product oriented” to a “customer-driven” model
- decision support system to provide a single set of reliable indicators. A single Data repository for all merchandise data implemented
- IT infrastructure to provide high security, high availability and reliable IT operations
- Launching on-line merchant site and providing better service levels to users and customers.
The Carrefour loyalty program was launched in 2004 achieving m15 members by 2008. Two outsourced data centres were created in 2005 and ITIL processes deployed. IT governance approved more than 200 projects worth more than €400 m with benefits in excess of €500m. In 2008 costs were down to 0.76% of Carrefour revenue. The business could rely on IT to launch new services and marketing campaigns on time.